If a Bond Is Callable,the Call Price Is Usually Lower

question 181

True/False

If a bond is callable,the call price is usually lower than the face value of the bond.

---

Definitions:

Risk

The exposure to uncertainty or the potential of loss that can occur as a result of an investment's actual return differing from the expected return.

Acquisition Analysis

A financial and strategic assessment to understand the value, synergies, and potential benefits of acquiring a company or asset.

Target Firm

A target firm is a company that is identified as a potential acquisition candidate by another company or investor.

Merger NPV

The net present value of combining two or more companies, taking into account the projected cash flows and synergies resulting from the merger.